Daily markets: inflation in the spotlight today
The big picture today Markets in China and Taiwan are closed today as the two countries wrap up Lunar New Year celebrations. Other Asia-Pacific stock markets ended the day on a mixed note. South Korea’s KOSPI gained 0.63%, Hong Kong’s Seng rose 0.54%, Australia’s ASX All Ordinaries rose 0.28%, while Japan’s Nikkei was near flat, making a gain of 0.07% to close out the week. Yesterday’s decline in India’s Sensex accelerated with the index down 1.45% today. The same research house that targeted companies like Herbalife (HLF) in the past has now set its sights on one of India’s largest conglomerates and published a long report yelling how he feels is a fraudulent activity. By midday, European stock indices are up across the board and US futures are pointing to a weaker market open. Futures contracts were weighed on the disappointing results and forecasts of Intel (INTC) this indicates that we still have some way to go until PC demand and its other end markets improve. As we digest this morning’s crop of earnings reports from American Express (AXP), Herringbone (CVX), and others, 8:30 a.m. ET brings the latest inflation data in the form of the Personal Consumption Expenditure (PCE) Price Index for December ahead of the Fed’s monetary policy meeting next week. This is a preferred Fed inflation gauge and will be aggregated with December personal income and spending data. In this data, the market will pay attention to the PCE basic data for December, which is expected to decline to 4.4% YoY from November’s 4.7%. If this data points to stronger than expected progress on inflation, the market is likely to interpret this as supportive of what the Fed will do next week. Data download International economy Reports indicate that in addition to a new offensive on Ukraine that could take place as early as next month, Russian President Vladimir Putin is preparing the country for a conflict that is expected to last for years. Oil prices rise in early market trading after yesterday’s stronger-than-expected US economic growth and hopes of a quick recovery in Chinese demand as Covid-19 cases and deaths plunged by from last month’s record highs. Domestical economy Shortly after the market opens, December pending home sales data will be released, as will January’s final reading of the University of Michigan Consumer Confidence Index. House Republican leaders are considering proposing a short-term extension of the federal debt ceiling to delay the risk of default until September 30. Markets Yesterday, markets rallied as the Dow Jones and Russell 2000 gained 0.61% and 0.67% respectively, the S&P 500 rose 1.10% and the Nasdaq Composite closed up 1.76%. All sectors except Consumer Staples (-0.35%) advanced, with Energy (3.16%) and Consumer Discretionary (2.05%) leading the way. The consumer discretionary sector was boosted by Tesla (TSLA) gaining 10.97% on a well-received earnings call, contributing just over 60% of the sector’s gain on the day. Materials (0.48%) were held back by Sherwin Williams (SHW) disappointing in its earnings call and lowering the forecast for 2023, saying they are preparing “to the worst.” The stock lost 8.92%. Here’s how the major market indicators stack up since the start of the year: Dow Jones Industrial Average: 2.42% S&P 500: 5.75% Nasdaq compound: 9.99% Russell 2000: 8.05% Bitcoin (USD-BTC): 38.56% Ether (ETH-USD): 33.64% Stocks to Watch Prior to the start of trading for stocks listed in the United States, American Express, Booz Allen Hamilton (BAH), Charter Communications (CHTR), Chevron (CVX), Gentex (GNTX), and HCA Health (HCA) will be among the companies that will publish their quarterly results. Shares of Intel sank into aftermarket trading last night after the company reported December quarter results that missed the mark and issued a lower guidance for the current quarter. Sharing its guidance for the March quarter which calls for EPS of -$0.15 on revenue of $10.50 billion to $11.50 billion versus expectations of $0.25 billion and $14.0 billion respectively, Intel shared that it expects macro weakness to persist in 1H23 with the possibility of improvements in 2H23. That prompted Intel to share that it now sees the PC market in 2023 down from its previous forecast of 270 million to 295 million. Semiconductor Capital Goods Company KLA Corp. (KLAC) released results for the December quarter that exceeded expectations for revenue and earnings. However, the company acknowledged that despite a favorable long-term outlook, the coming year will be the year of industry capacity adjustments as customers refine their CapEx plan to meet lower demand. in some segments. The return of cross-border travel has led Visa (V) to deliver better than expected results for its December quarter. Payments volume in the quarter increased 7% year-on-year in constant dollars, with cross-border volume up 22% and transactions processed up 10%. This led Visa to report December quarter EPS of $2.18 versus consensus of $2.01 and revenue of $7.9 billion versus consensus of $7.7 billion. dollars. Hasbro (HAS) issued a lower outlook for its December quarter with revenue and EPS of $1.68 billion and $1.29 to $1.31 from consensus of $1.93 billion and $1.53 $. According to the company, “Despite strong growth in Wizards of the Coast and Digital Gaming, Hasbro Pulse and our licensing business, our Consumer Products business underperformed in the fourth quarter amid a challenging consumer environment for consumers. vacation.” Hasbro also announced that it would cut about 1,000 positions from its workforce, or about 15% of the full-time employee base. European planner Airbus (EADSY) will recruit an additional 13,000 workers in 2023, 9,000 of whom will be based in Europe, with the balance split between operations in the United States and China. IPOs The IPO calendar could be a little hotter than in recent weeks with potential prices from Genelux (GNLX), Elate Group (ELGP), MorningStar Partners (TXO) and Syla Technologies (SYT). Readers who want to dig deeper into the schedule of upcoming IPOs should visit Nasdaq’s Latest and Upcoming IPOs page. After today’s market close We have come to Friday, which means that no company is expected to release its latest quarterly results after the stock halt today. Those interested in learning more about which companies release their reports when head to the Nasdaq earnings calendar. on the horizon monday january 30 Euro zone: Business and consumer survey – January United States: Chicago PMI – January tuesday 31 january Japan: unemployment rate, industrial production, retail sales – December China: Manufacturing and non-manufacturing PMI – January Germany: Consumer Price Index – January United States: employment cost index – 4th quarter 2022 United States: Consumer confidence – December Wednesday, February 1 Japan: Nikkei S&P global manufacturing PMI – January China: Caixin manufacturing PMI – January Euro zone: manufacturing PMI – January Euro zone: Consumer price index – January US: Weekly MBA Mortgage Applications United States: ADP report on the evolution of employment – January United States: S&P Global Final Manufacturing PMI – January United States: construction spending – December United States: ISM manufacturing index – January United States: JOLT Job Openings Report – December United States: EIA Weekly Crude Oil Inventories United States: FOMC rate decision Thursday February 2 European Central Bank decision on interest rates United States: job cuts at Challenger – January United States: Initial and Continuing Weekly Unemployment Claims United States: unit labor cost and productivity – 4th quarter 2022 United States: Factory Orders – December United States: EIA Weekly Natural Gas Inventories Friday February 3 Japan: Services PMI – January China: Caixin Services PMI – January Euro zone: S&P Global Services PMI, producer price index – January United Kingdom: Services PMI – January United States: employment report – January United States: S&P Global Final Services PMI – January United States: ISM non-manufacturing index – January Thought of the day “You may have to fight a battle more than once to win it.” – Margaret Thatcher Disclosures The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.